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Last Updated : Aug 13, 2019 09:58 PM IST | Source: Moneycontrol.com

Centre amends National Housing Bank Act to bring HFCs under RBI's ambit: Report

The report noted that it has activated two proposals that were announced in the Budget to give relief to non-banking financial corporations (NBFCs).

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The government has activated two Budget proposals laid out to provide relief to the Non-Banking Finance Companies (NBFCs).

The National Housing Bank Act has been amended to bring housing finance companies (HFCs) under the Reserve Bank of India’s (RBI) ambit, according to a CNBC-TV18 report.

Among the other proposals, the implementation of the partial credit guarantee scheme to public sector banks (PSBs) for buying high-rated pool assets of financially sound NBFCs is now operational.

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Also, banks can now classify the credit provided to NBFCs (for example, HFCs) for on-lending as priority sector lending.

In the Union Budget for FY 2019-20, the Finance Minister announced that RBI will get greater powers to regulate Non-Banking Finance Companies (NBFCs). The financial crisis in India started with banks and then moved to non-banks and has now engulfed housing finance companies (HFCs) as well.

Also Read: Budget 2019 proposals for the banking and NBFC sectors

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First Published on Aug 13, 2019 09:57 pm
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